Sirius XM Canada defeats certification of proposed consumer protection class action

On October 14, 2026, Sirius XM Canada Inc. ("Sirius XM Canada") successfully defeated certification of a proposed class action alleging that pricing disclosures on its website and print advertisements constituted false, misleading or deceptive representations under the Ontario Consumer Protection Act and analogous consumer protection legislation in other provinces.

The proposed class action challenged advertisements displaying a base price accompanied by fine print written disclosures such as "plus fees and taxes" or "see offer details below," with the full quantum of fees disclosed at the bottom of the page, a later page in the advertisement, or at a later stage of the purchase process. In dismissing the certification motion, Justice Morgan held that the pleadings disclosed no reasonable cause of action. The Court confirmed that the analytical framework established in Rebuck v. Ford Motor Company, 2023 ONCA 121 and Zanin v. Ooma, Inc., 2025 FC 51, aff’d 2026 FCA 98 applies to consumer protection claims concerning price representations, finding that consumers are capable of reading the literal words of an advertisement and that the pricing disclosures at issue provided sufficient information regarding applicable fees. Justice Morgan also dismissed the plaintiff's alternative causes of action, including unjust enrichment.

The decision marks the first time that a drip pricing claim brought under a provincial Consumer Protection Act has been successfully resisted and provides guidance for future cases involving pricing disclosure practices.

Sirius XM Canada is a Canadian audio entertainment company offering satellite radio and streaming audio services, including music, sports, news, talk and entertainment programming.

McCarthy Tétrault LLP represented Sirius XM Canada with a team led by Michael Rosenberg and Nikiforos Iatrou that included Michael (Ruofan) Cui.